1. BITBILIHome
  2. Article

Fidelity Resubmits Bitcoin ETF Application, Fueling Optimism for Crypto Industry

• 78 views

TL;DR Breakdown

  • Fidelity has refiled its application for a spot Bitcoin ETF, joining other prominent asset managers in seeking approval from the SEC. 
  • The approval of the first Bitcoin futures ETF in 2021 has generated optimism for the future of spot Bitcoin ETFs. 

Description

In a move that has reignited hopes for the cryptocurrency industry, asset management giant Fidelity has refiled its application to list and trade shares of its Wise Origin Bitcoin Trust spot bitcoin exchange-traded fund (ETF). The announcement comes amidst a flurry of similar applications from prominent financial institutions, including BlackRock, WisdomTree, Invesco, and VanEck.  These … Read more

In a move that has reignited hopes for the cryptocurrency industry, asset management giant Fidelity has refiled its application to list and trade shares of its Wise Origin Bitcoin Trust spot bitcoin exchange-traded fund (ETF). The announcement comes amidst a flurry of similar applications from prominent financial institutions, including BlackRock, WisdomTree, Invesco, and VanEck. 

These filings signal a renewed interest in the crypto sector, providing a much-needed boost after a period of uncertainty. While the Securities and Exchange Commission (SEC) has rejected numerous spot bitcoin ETF applications in the past, the approval of the first bitcoin futures ETF in 2021 has raised expectations for a favorable outcome.

Contents
hide

1
Fidelity Revives Spot Bitcoin ETF Application

2
Major Asset Managers Join the Crypto Bandwagon

3
Regulatory Hurdles and the Future of Bitcoin ETFs

4
Conclusion

Fidelity Revives Spot Bitcoin ETF Application

Fidelity Investments, one of the world’s largest asset managers, has resubmitted its application for a spot bitcoin ETF to the U.S. Securities and Exchange Commission. The filing, made through the listing exchange Cboe Global Markets, seeks approval to list and trade shares of the Wise Origin Bitcoin Trust. This move by Fidelity reflects the growing interest of established financial institutions in expanding their offerings to include digital assets.

The decision to refile the application comes after the SEC rejected Fidelity’s previous attempt in January 2022. The regulator cited concerns about the potential for fraudulent and manipulative practices, emphasizing the need to protect investors and the public interest. However, with the recent approval of the first bitcoin futures ETF in October 2021, industry experts believe there may be a more favorable regulatory environment for spot bitcoin ETFs going forward.

Major Asset Managers Join the Crypto Bandwagon

Fidelity’s renewed application is part of a larger trend among traditional financial heavyweights seeking to enter the crypto market. BlackRock, WisdomTree, Invesco, and VanEck have also submitted paperwork to list spot bitcoin ETFs on various exchanges, including Cboe BZX, Nasdaq, and NYSE Arca. The growing interest from these prominent asset managers highlights the increasing acceptance and recognition of cryptocurrencies as an investment asset class.

The crypto industry has faced significant challenges in recent times, with notable incidents such as the collapse of the FTX exchange and a regulatory crackdown by the SEC. However, the influx of applications from established financial institutions has injected renewed optimism into the sector. This development has been reflected in the market, with Bitcoin surging to a one-year high of over $31,000 following the news.

Regulatory Hurdles and the Future of Bitcoin ETFs

Despite the growing interest and optimism surrounding spot bitcoin ETFs, regulatory hurdles remain a significant obstacle. The SEC has consistently rejected previous applications, citing concerns about market manipulation and investor protection. The approval of the first bitcoin futures ETF in 2021 represented a breakthrough but did not guarantee a favorable outcome for spot bitcoin ETFs.

The distinction between spot and futures-based ETFs is crucial. Spot ETFs directly track the price of the underlying cryptocurrency, whereas futures-based ETFs follow the price of bitcoin futures contracts. Regulators may view spot bitcoin ETFs as more susceptible to market manipulation, as they rely on the underlying asset’s immediate price movements. In contrast, futures-based ETFs offer more regulated and standardized trading environments.

Conclusion

The refiled application by Fidelity for a spot bitcoin ETF, along with similar moves by other major asset managers, indicates a growing interest and confidence in the crypto industry. While previous spot bitcoin ETF applications have faced rejection due to regulatory concerns, the approval of the first bitcoin futures ETF in 2021 has raised hopes for a more positive outcome. The filing of these applications represents a significant development for the cryptocurrency market, offering increased accessibility and legitimacy to digital assets. 

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

文章来源于互联网:Fidelity Resubmits Bitcoin ETF Application, Fueling Optimism for Crypto Industry

Disclaimers:

1. You are solely responsible for your investment decisions and this info is not liable for any losses you may incur.

2. The copyright of this article belongs to the writer, it represents the writer's opinions only, not represents the site's ones. Not financial advice.

Previous 2023年7月2日 22:57
Next 2023年7月3日 00:08

Related articles

  • U.S debt ceiling: President Biden and Republicans strive for consensus amid partisan divisions

    TL;DR Breakdown President Biden is negotiating with Republicans to raise the U.S. debt ceiling by June 5 to avoid a default. Discussions are stuck on work requirements for welfare programs like Medicaid and SNAP. Any agreement needs Congressional approval, which could take over a week as the June 5 deadline approaches. President Joe Biden, a Democrat, alongside key Republican representatives, is grappling with the precarious issue of raising the U.S. government’s formidable $31.4 trillion debt ceiling. Unless appropriate action is taken, the Treasury Department’s red flag warning of a potential default by June 5 has created a pressure cooker environment. Weeks of negotiations have seen the two sides wrestling over the government’s self-imposed borrowing limit while Republicans push vehemently for a considerable slash in spending. The implications of failing to strike a deal are daunting. The United States, the world’s largest economy, could face a catastrophic financial default that would not only shake domestic markets but also rattle the foundation of the global financial system. On Friday, Biden signaled hope, expressing optimism about the negotiations. Echoing this sentiment, Republican Representative…

    Article 2023年5月30日

  • FTX troubles double with $500 AI sale suspension and hush money accusations 

    TL;DR Breakdown FTX filed a complaint against former regulatory and compliance officer Daniel Friedberg, who paid bribes to discourage personnel from speaking out about the exchange’s failing state. In one alleged ‘hush money’ instance, Friedberg allegedly retained the attorney of a whistleblower after paying them. Also, the sale of FTX’s $500 million stake in artificial intelligence startup Anthropic has been placed on hold. Description FTX has found itself caught in a swirling whirlwind of trouble akin to a digital tornado that shows no signs of abating. As if navigating the stormy seas of the crypto world wasn’t challenging enough, the failed crypto exchange now finds its woes doubling, with a suspension of $500 AI sales and the ominous whispers … Read more FTX has found itself caught in a swirling whirlwind of trouble akin to a digital tornado that shows no signs of abating. As if navigating the stormy seas of the crypto world wasn’t challenging enough, the failed crypto exchange now finds its woes doubling, with a suspension of $500 AI sales and the ominous whispers of hush money…

    Article 2023年7月1日

  • Apple swiftly purges fake Trezor app from App Store

    TL;DR Breakdown Apple has removed a fraudulent app posing as the cryptocurrency hardware wallet Trezor from its App Store. The scam app, “Trezor Wallet Suite,” was exposed by Rafael Yakobi, a managing partner at Crypto Lawyers. Despite Apple’s immediate action, another potential rogue app, “MyTREZŌR Suite: One Edition,” was found in the App Store. Description In a response to an emergent security threat, Apple Inc., the technology behemoth, has removed a fraudulent application posing as Trezor, a reputed cryptocurrency hardware wallet, from its App Store. Despite this prompt action, investigations reveal that other counterfeit apps are still at large within the digital platform. Apple’s quick trigger action against fraudulent apps … Read more In a response to an emergent security threat, Apple Inc., the technology behemoth, has removed a fraudulent application posing as Trezor, a reputed cryptocurrency hardware wallet, from its App Store. Despite this prompt action, investigations reveal that other counterfeit apps are still at large within the digital platform. Apple’s quick trigger action against fraudulent apps Rafael Yakobi, the managing partner at Crypto Lawyers, first spotlighted the issue…

    Article 2023年6月23日

  • Mastering China: UBS reveals winning strategy amid tensions

    TL;DR Breakdown UBS provides a strategy for navigating China’s volatile economic landscape. Emphasis on key policy areas like property easing, private sector support, and local government debt solutions. Description With the looming unpredictable clouds over China’s economic landscape, UBS has recently shed some light on how to navigate this turbulent financial storm. Drawing upon their insights and expertise, they’ve carved a roadmap for investors who are brave enough to venture into this complex territory. UBS: Finding Opportunity amidst the Chaos UBS doesn’t shy away … Read more With the looming unpredictable clouds over China’s economic landscape, UBS has recently shed some light on how to navigate this turbulent financial storm. Drawing upon their insights and expertise, they’ve carved a roadmap for investors who are brave enough to venture into this complex territory. UBS: Finding Opportunity amidst the Chaos UBS doesn’t shy away from acknowledging the dynamic and volatile nature of the Chinese market. Their recent directives to investors revolve around anticipating and leveraging key policy-related measures. These encompass areas such as property easing, private sector aid, consumption incentives, and resolving…

    Article 2023年9月4日

  • Kenya forms committee to investigate Worldcoin’s Iris Scan authentication

    TL;DR Breakdown Kenya’s legislative bodies have established a 15-member committee from various sectors to investigate Worldcoin’s operations within 42 days. Worldcoin began its Kenyan operations on July 24th by setting up ‘orbs’ in Nairobi that exchanged cryptocurrency for iris scans from locals. Kenyan authorities suspended Worldcoin due to concerns about its functioning, especially regarding data security and privacy. Description Kenya’s legislative bodies have set up a dedicated committee to probe the operations of Worldcoin, a controversial cryptocurrency demanding iris scans for user authentication. Comprising 15 members from the Tourism and Wildlife, Communication and Innovation, and Administration and Internal Security sectors, the committee’s task is to scrutinize Worldcoin within a 42-day timeframe, as directed by … Read more Kenya’s legislative bodies have set up a dedicated committee to probe the operations of Worldcoin, a controversial cryptocurrency demanding iris scans for user authentication. Comprising 15 members from the Tourism and Wildlife, Communication and Innovation, and Administration and Internal Security sectors, the committee’s task is to scrutinize Worldcoin within a 42-day timeframe, as directed by Kenya’s National Assembly. Worldcoin, which debuted globally on…

    Article 2023年8月22日
TOP